Simultaneous Closing


#1

Frank,

I have an opportunity for a possible simultaneous closing. I am looking at acquiring a small company that has 3 structures in their portfolio and they have agreed to give me a 60 due diligence period. I really only want one of the structures but I believe I can find a buyer for the other two in 60 days and still clear a profit after the deal. I know you have done this in the past and I am wondering how everything changes hands. Lets say my contract amount is $50k with 60 day due diligence and I find a buyer to offer me $60k for the 2 boards I don’t want. Do I just get my buyer to write one check for the $50k that I can give to the seller and another $10k check to me? Also how does the paperwork pan out. Can I have the seller sign 2 of the boards directly to my buyer or do they have to pass through my name first?


#2

Frank, I would really like to hear your feedback on this topic. Or anyone else that has ever done this.


#3

Why is this question going unanswered?


#4

I’ve been on the road for two weeks with limited internet access.

I did a simultaneous closing on my purchase of the signs in Los Angeles, California, in which I sold three signs to what was then Foster & Kleiser (now Clear Channel). Here’s how it worked. We had a simultaneous closing in which Foster & Kleiser wired in the money for the three signs, and I wired in the money for the remainder, and the title company separated who got what (and would have refunded the money to Foster if I had not showed up with my money).

To do this effectively, you have to use two resources:

  1. A decent attorney to draft the documents and protect your interests

  2. A solid title company to act as referee and protect all parties’ interests

Don’t try to do this on your own, or in the absence of a title company, as it will probably implode. These type of deals have a huge potential for litigation as you have not two parties to please but three, and their future is all tied together.


#5

Thanks for the info Frank. Would both parties need to know that my intent is to flip the billboard? Are there any other ways to flip a board without fronting the money?


#6

We are taking offers for purchase of our property.
It has two boards on it. A 10x22 and a junior board.
It has permits held by Fairway outdoor HOWEVER there are no current lessees in effect and can be negotiated by a new owner! -In March we issued them a letter stating the leases will not be renewed.-

The address is:
11304 US-221
Woodruff, SC 29388
Tax map #4-32-00-050.01

Send your Letter of intent to purchase to Christopher@capitalmatters.us